India has been a major contributor to SAARC's development fund and projects related to natural disasters, pandemics, and terrorism. As the largest SAARC member by economy and population, India aims to foster better understanding and cooperation through people-to-people initiatives and offers great potential for investment and trade with its SAARC neighbors. India also enjoys close cultural, economic, and political ties with individual SAARC members like Nepal, Bhutan, and Sri Lanka through partnerships in areas like hydropower, trade, foreign direct investment, and cultural/linguistic exchanges.

1. *

2. *
* SAARC’s prime objectives include: promoting the welfare of
the people of South Asia, accelerating the Economic growth,
social progress; providing dignified livelihood to all
individuals and on a larger scale promoting the self-reliance
amongst the South Asian nations and building trust and
appreciation for other countries’ problem
* Discussion of contentious bilateral issues is excluded from
the SAARC charter at Indian insistence. Instead, SAARC
programs exist in the areas of agriculture, rural
development, transportation and telecommunications,
meteorology, health and population control, postal services,
science and technology, culture and sports, women in
development, drug trafficking and abuse, and terrorism.

3. *
* SAARC was established in December 1985 during the first SAARC summit
that was held in Dhaka. After gaining independence from the British rule,
India adopted the policy of NSR or National Self Reliance and next formed
SAARC along with 6 other member nations of South Asia namely:
Bangladesh, Bhutan, Pakistan, Nepal, Maldives, India and Sri Lanka which
continue to be its members till date.
* India succeeded in building excellent trade relations and cordial relations
on social, political and economic front with the 6 SAARC countries.
* India has been an active member of the SAARC and aims and fostering
better mutual understanding by supporting people-to-people initiatives.
India offers a great source of potential investment in terms of trade and
commerce as it is the sole SAARC member to be sharing borders with all 6
members via land or sea.

4. *
*India has been one of major contributors to the
SAARC Development Fund. The Fund has three
areas of action on social, economic and
infrastructure. India has offered US$ 100
million for the SAARC Fund to be utilized for
projects in other SAARC countries. In the
context of SAARC, India has also contributed to
projects on natural disasters, pandemics in
particular HIV/AIDS and Avian Flu and
terrorism.

5. *

7. *
*The saarc preferential agreement was passed in the
year 1993 sapta liberalised the trade agreement
between the saarc countries and urged member
states to make previously unimaginable tariff
concession while tarding among each other
*The success of this progarm was so notable that
saarc member countries are in the process of
drafting and even more elaborate treaty system
that shall allow the development of free trade area

8. *
* NEPAL-Relations between India and Nepal have traditionally been close
since ancient times as a result of geographical location and common
religious, linguistic and cultural identities that overlap the two
countriescultural relation between nepal and india have many
facets,religion is perhaps the most important factor in shaping the cultural
relations between two countries,
* another important component in building nepal-india relation is cinema’s
and music not only the indian cinema’s and musics are popular in nepal
but also the nepal’s cinema’s and musics are popular in india especially in
places with concerntration of people with nepalese origin in mainly in the
northern and north eastern india
* between india and nepal there have been a frequent exchange of
ideas,personalities and group of people representing the areas of arts
,culture ,music literature and sports.

9. *
* Independent India and Nepal initiated their special relationship with the
1950 Indo-Nepal Treaty of Peace and Friendship and accompanying letters
that defined security relations between the two countries, and an
agreement governing both bilateral trade and trade transiting Indian soil.
The 1950 treaty and letters stated that "neither government shall tolerate
any threat to the security of the other by a foreign aggressor" and
obligated both sides "to inform each other of any serious friction or
misunderstanding with any neighbouring state likely to cause any breach
in the friendly relations subsisting between the two governments." These
accords cemented a "special relationship" between India and Nepal that
granted Nepal preferential economic treatment and provided Nepali in
India the same economic and educational opportunities as Indian citizens.
The Indo-Nepal border is open; Nepalese and Indian nationals may move
freely across the border without passports or visas and may live and work
in either country.

11. *
*By inviting all the SAARC heads to his swearing-
in ceremony, Modi signaled his intent to focus
on the neighbourhood.
*Modi’s decision to make Nepal and Bhutan his
first foreign policy stops must be followed up
as both countries have massive hydropower
potential.etc

12. *
*Diplomatic relations between India and Bhutan
were established in 1968 with the appointment
of a resident representative of India in
Thimphu
*The traditionally unique bilateral relations,
characterised by trust and understanding have
Matured over the years.
* Today, there is extensive cooperation in the
field of economic development, especially in
the mutually beneficial sector of hydropower.

13. *
*Mutually beneficial economic inter-linkages
between India and Bhutan have been an important
element in our bilateral relations. India continues
to be the largest trade and development partner of
Bhutan. Planned development efforts in Bhutan
began in the early 1960s. The First Five Year Plan
(FYP) of Bhutan was launched in 1961. Since then,
India has been extending financial assistance to
Bhutan’s FYPs. The 10th FYP which is underway
comes to an end in June 2013. India's overall
commitment to the 10th FYP is Rs. 100 billion.

14. *
*Hydropower is one of the major sectors of bilateral
cooperation. Three Hydropower projects developed
with Indian assistance and which have already been
completed are 1020 MW Tala Hydroelectric Project,
336 MW Chukha Hydroelectric Project, 60 MW Kurichhu
Hydroelectric. Ten more projects have been agreed to.
Of these three are already under construction –
Punatsangchhu-I Hydro Electric Project,
Punatsangchhu–II and Mangedechhu HEPs. Negotiations
are at an advanced stage for the remaining projects of
Kholongchhu HEP, Amochhu Reservoir, Wangchu RoR
and Bunakha Reservoir, Kuri Gongri, Chamkharchhu
and Sankosh.

15. *
* India is not only Bhutan's main development partner but also its
leading trade partner. A free trade regime exists between India and
Bhutan.
* The India-Bhutan Trade and Commerce Agreement which expired in
March 2005, was renewed in 2006 for a period of 10 years. Currently,
the major items of exports from Bhutan to India are electricity (from
Tala, Chukha and Kurichhu Hydroelectric Projects), base metals and
articles, minerals, vegetable fat and oils, alcoholic beverages,
chemicals, cement, timber and wood products, cardamom,
fruitproducts, potatoes, oranges and apples, raw silk, plastic and
rubber products. Major exports from India to Bhutan are petroleum
products, mineral products, base metals and articles, machinery,
automobiles & spares, vegetable, nuts, spices, processed food and
animal products, chemicals, wood, plastic and rubber.

17. *
*India is Sri Lanka's closest neighbour. The
relationship between the two countries is more than
2,500 years old and both sides have built upon a
legacy of intellectual, cultural, religious and
linguistic intercourse
*Cultural relations between India and Sri Lanka have
traditionally been close and friendly, reflecting
ethnic, cultural, religious and linguistic ties that
transcend recorded history. A number of events
were organized by the High Commission of India
during recent years to highlight the common bonds
treasured by our two countries such as Buddhism
and resonance of Tagore in Sri Lanka.

18. *
*India and Sri Lanka enjoy a vibrant and growing
economic and commercial partnership, with
bilateral trade growing rapidly in the last decade
and a number of leading Indian private sector
companies investing in Sri Lanka and establishing a
presence in this country. Sri Lanka is India's largest
trade partner in SAARC. India in turn is Sri Lanka's
largest trade partner globally. Much of the impetus
for the current level of our economic interaction
stemmed from the signing and entry into force of
the Free Trade Agreement (FTA) in 1998 and 2000
respectively.

20. *
*Here’s a short conclusion about the overall
performance of india in saarc-india is a leading
country among all the member countries of
saarc